ABSOLUTE POWER - Inside story of the National Stock Exchange’s amazing success, leading to hubris, regulatory capture and algo scam

by Sucheta Dalal

2012: Emkay fat-finger crash halts trading in October. 2013: Chitra Ramkrishna becomes MD & CEO; Ravi Narain becomes non-executive vice-chairman. 2015: Moneylife publishes whistle-blower’s letter in June, NSE files defamation against Moneylife in July; SEBI refers whistle-blower’s letter to Technical Advisory Committee in November. 2016: In April, SEBI-TAC submits report confirming whistle-blower’s allegations. SEBI revamps NSE board of directors; Subramanian Anand, group operating officer, leaves abruptly in October; Deloitte Touche Tohmatsu India LLP submits its forensic report; Chitra Ramkrishna resigns in December. 2017: NSE commissions Ernst & Young for forensic audit into equity and currency segment; SEBI issues show-cause notice to 14 NSE officials and others in May; Ravi Narain resigns in June; Vikram Limaye appointed MD & CEO in July; NSE withdraws its Rs100 crore (Rs1 billion) defamation suit against Moneylife in September. 2018: CBI registers an FIR on NSE Colo scam in May; SEBI issues show- cause notice to NSE on dark fibre issue in July. 2019: SEBI passes orders in Colo scam against NSE’s top officials, orders disgorgement. 2020: Largest number of broker defaults in a year; SEBI issues new show- cause notices in Colo scam and NSE’s earlier investments, in February 2021: SEBI issues two adjudication orders against NSE, Ravi Narain, Chitra Ramkrishna and OPG Securities imposing fines on all.